SMC says housing study promising

College expects dormitories to be self-funded and draw new students.

College expects dormitories to be self-funded and draw new students.

April 12, 2007|Tribune Staff Report

DOWAGIAC -- Surveys of current and prospective students indicate that residential housing would likely pay for itself at Southwestern Michigan College, according to a feasibility study. SMC President David Mathews reported Tuesday that "housing for approximately 120 students could rapidly achieve and maintain an occupancy of at least 90 percent." The college would use the rent revenue to cover bond payments, maintenance, supervision and other costs, Mathews continued, noting that a margin of error was built into its estimates. "Student and prospective student surveys indicate that occupancy estimates are significantly more than 100 percent covered," he said in a written statement. "Surveys also indicate that as many as 80 percent of the residential students would be new students who would not attend without on-campus housing. Our estimates are that new students who will come to SMC because of the on-campus housing will result in an additional $150,000 to $200,000 per year of additional revenue beyond that which is required to build, maintain and operate the facility." The living spaces would be designed as suites with a small kitchen and living room area for four students, who will each have a private bedroom within the suite. SMC is looking to generate additional tuition revenue by attracting more students, specifically traditional-aged students. Since 2001, the college has lost about a million dollars of its base state aid and seen retirement, energy and health insurance costs increase significantly. The college has enacted a number of cost-containing measures, including salary freezes, employee health care contribution increases, and cuts to programs and administrative positions. SMC also attempted without success a trio of modest millage proposals in the past two years that would have helped stabilize its funding base and reduced the impact of the state cutbacks on its programs. The only income source the college has any control over is tuition revenue, and SMC has already increased those student costs in recent years to help compensate for state funding losses.